Gold ($2,690/ounce) and silver ($30.4/ounce) extended the upside last week by posting a gain of 1.9 per cent and 2.7 per cent respectively.

In the domestic market, gold futures (₹78,423/10 gm) was up 1.4 per cent and silver futures (₹92,506/kg) shot up 3.7 per cent.

MCX-Gold (₹78,423)

Gold futures (February) advanced further on the positive momentum and moved above a trendline resistance, confirming a triangle pattern. Although the breakout is not solid, the price action remains positive.

In the near term, gold futures is likely to appreciate to ₹80,200. A breach of this can lift it to ₹81,000. But if the contract drops from the current level, it can find support at ₹78,000 and ₹77,200.

Note that so long as the support at ₹75,000 holds, the broader bias will remain bullish.

Trade strategy: Last week, we suggested going long at ₹76,800. Retain this trade but revise the stop-loss from ₹75,000 to ₹76,800. Book profits at ₹80,000.

MCX-Silver (₹92,506)

Silver futures (March) broke out of the resistance at ₹90,200 last week and the price is now above both 20 and 50-day moving averages. But there is a resistance ahead at ₹93,600.

This barrier is not likely to end the rally. Rather, it might lead to a minor correction to ₹91,000 from where the next leg of uptrend can begin.

Notable support levels are at ₹90,200; ₹86,800 and ₹85,000.

The silver futures shows potential to touch ₹96,500 soon. A breach of this can take the price higher to ₹1,02,500.

Trade strategy: Go long on silver futures if the price dips to ₹91,000. Target and stop-loss can be ₹96,500 and ₹88,500 respectively.